Government Preparing Regulations to Allow Foreign Ownership of Luxury Apartments.

While foreigners are banned from owning property in Indonesia, the Minister of Public Works Basuki Hadimuljono has disclosed that the Government plans to open limited ownership to non-Indonesians.

The plans now under consideration would allow ownership via strata titles on apartments and would not include single-family dwellings on separate plots of land.

As reported by Tempo.co, the plan to allow foreigners to purchase apartments awaits the formal agreement of President Joko Widodo.

“The (entry) price (for foreign ownership) will also be controlled,” said Basuki following a meeting with the Housing Commission of the Indonesian House of Representatives (DPR-RI) on Friday, June 24, 2015.

According to Basuki, the new law now under consideration would set a minimum apartment price of Rp. 5 billion (US$375,00) for apartments purchased by foreign nationals.

The government may also set a limit on the total number of apartments made available for purchase by foreigners.

President Widodo has reportedly already endorsed the principle of allowing foreigners to own property in Indonesia, accepting a proposal put forth by Real Estate Indonesia in order to help stimulate the national property market and match market opportunities enjoyed by Malaysia, Thailand, Singapore and Australia where foreign ownership of land is permitted.

Basuki said the necessary regulations were being drafted by the Minister of Finance.

At this time, foreigners are only allowed to build a home on lease hold land contracted for a maximum 25 years, with options sometimes granted for an additional 25 years.

Past efforts to allow foreign ownership of property in Indonesia have been rejected by the Indonesian Constitutional Court.